Generally, an individual does not have much power. The employer or the company is on the dominant side. It has the ability to negatively and unduly influence an individual worker of the organization or the company, as the case may be. The company is powerful, has more contacts, has more money, has more lawyers, and in general has much more power over an individual worker. Typically, an individual worker does not influence the company. Due to this, it is not uncommon to see that the company is unduly influencing the individual workers and getting deals that are not in favor of the workers.
Therefore, to level the playing field, such individuals come together and make an association. Such association is called â€˜Labor Union.â€™ There may be hundreds or even thousands of individuals in an organization. Such labor unions are powerful because of their sheer numbers. They have strong negotiating powers. The company has to be careful while dealing with a union. In simple words, a union creates equality and protects the rights of the workers of the organization.
The existence of a labor union assures that the company does not trample the rights of the workers and employees. Ultimately, it benefits the company in the long run. As the rights of the workers are protected, they work better for the company. It is a win-win situation for both sides.
A labor union works democratically. The chairperson, treasurer, and other posts are filled up by holding elections. All the workers vote for the said positions. The people who are elected represent the labor union in negotiations.
Labor Unions in the United States
Two significant organizations oversee most of the labor unions in the United States. They are as follows:
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO); and
Change to Win Federation (CtW)
To form a union, any locally based group of employees must obtain a charter from any of the above organizations.
Labor unions can be established for both private as well as governmental organizations. For the private sector, the statute which governs the labor unions is the National Labor Relations Act, 1935. It is still applicable. The said statute is supervised and administered by the National Labor Relations Board (NLRB). The NLRB is an independent federal agency.
Labor unions in governmental organizations are regulated by federal as well as by the respective state laws. All 50 states have different labor laws.
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